John A. Weeks III wrote:

- quote -

Jeremy Siegel in _Stocks for the Long Run_, (third edition, 2005) says
that the dogs of the dow strategy still works, just not as well as
before. I don't actually know if that is true (I'd have to look at his
data again), but you're point is well taken - well published strategies
tend to diminish in value. Witness, for example, the January effect.

-Will

- quote -

Treasury debt with a term of 1 year or less is a T-bill, longer than 1 year
to 10 years is a T-note and longer than 10 years is a T-bond. 1 year (52
week) t-bills were offered until 27 FEB 2001. Refer to Treasury press
release http://treas.gov/press/releases/po15.htm .

"Shhhh" <123[at]456.com> wrote in message
newsOydnSBTHN2gVi3YnZ2dnUVZ_rKvnZ2d[at]comcast.com...
- quote -

The book is not up to date. 1 year (52 week) t-bills were offered until 27
FEB 2001. Refer to Treasury press release
http://treas.gov/press/releases/po15.htm .

In article <oOydnSBTHN2gVi3YnZ2dnUVZ_rKvnZ2d[at]comcast.com> ,
"Shhhh" <123[at]456.com> wrote:

- quote -

Perhaps it would be wise to learn the lesson of the "dogs of the dow".
Whenever a strategy works, it works because there is a gap in
information somewhere. Normally, the market knows everything, but
every once in a while, a gap happens. The dogs strategy was a gap.
It worked great when only 9 or 10 people in the USA were doing it.
Then it got famous. Then, perhaps it was 1998, everyone in the
country tried it. And it failed. And it has failed every since.
The lesson is that once a strategy becomes well known, it gets
factored into the market, and it doesn't work any more. So if
you are following something that you read in a book, this might
be the year that a lot of folks try it, and it will fall flat on
its face. Avoid the trend of the day like these fad investing schemes.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

zxcvbob wrote:
- quote -

As an individual, the commission you have to pay probably over-weight
any "excessive" profit you may get. For others (e.g. hedge fund etc),
they can benefit by investing 1-year bond because 1-year is a magic
number which may make the instrument cheaper than it should be. A
simple explaination is that 1 year is the boundary of "long-dated" and
"short-dated" bond investment. Thus those long dated (mutual) funds
have to dump the instruments if they are due to mature in 1year
(because of their investment policies) and those short-dated funds may
not have made the matching purchase. So the result is 1-year bond's
price may be depressed.

Shhhh wrote:
- quote -

A bond with 1 year or longer until maturity will be called a "T-bond" or a
T-note." AFAIK, the treasury doesn't issue any 1 year bonds; it jumps from
6 months to 2 years. Maybe the author is talking about buying T-bonds and
T-notes (that have one year left) on the secondary market? That sounds
really suspect because of the commissions you'll have to pay, where buying
original issues there's no commissions or fees.

Best regards,
Bob

I apologize in advance for the ignorance this question posseses... I've been
reading a book called "Beating the Dow with Bonds" by Michael O'higgins
http://www.amazon.com/Beating-Dow-Bo...e=UTF8&s=books

it's kind of a follow up to a former straegy of his known as "dogs of the
dow".

anyway in his book he states if certain conditions are met: "invest in u.s.
treasury bills due to mature a year from now" now I've looked high and
low... does treasury direct offer a 1 year t-bill? I can find 6 month, and 2
year but no 1 year. Am I not looking in the right place?


Thanks,
Shhhh